Microsoft Dynamics 365 Enterprise Edition - Financial Management - Third Edition

Conditional tax setup and configuration

The conditional tax should be activated first, then the conditional sales tax code should be identified and attached to the conditional sales tax code in the sales tax group and item sales tax. The invoice document will inherit the sales tax group and item sales tax group, where the conditional tax will be posted. In the course of payment transactions, the conditional tax entry is reversed, and the post to the tax account will be settled at the end of the period. The following diagram illustrates the conditional sales tax setup:

You need to create separate ledger posting groups and settlement periods ...